What does the re-elected Liberal government mean for the Sunshine Coast property market?
Political preferences aside.. now that we are certain that a Liberal Government will be in power for the next 4 year term, what could that potentially mean for the Australian property market in general and the property market in the Sunshine Coast specifically?
The one obvious policy that the Liberals have always committed to is to keep negative gearing in place. This is generally considered a positive for the Australian property market as it gives higher income earners an incentive to purchase investment properties and to keep the existing properties that they do own. If we had seen negative gearing scrapped then the most likely follow on effect would of been less investment buyers in the market, leading to an oversupply of homes and gradually the value of those homes would decrease. You could say it would of made housing more affordable if it was introduced? That may be so, but, spare a thought for the millions of Australians whose properties would be in negative equity - this is already taking its toll in Sydney and Melbourne. Value's have already dropped so much that the reserve bank is still cutting the official cash rate to keep house prices at a steady level.
The other factors to consider which will also have a flow on effect are the promised tax cuts. Business tax for small to medium business's (under $50m turnover annually) has dropped to to 27.5 then onto 25% from 30% which should encourage more business investment and employment. Personal tax rates will also be cut with the marginal tax rate of 32.5% to 30% which will have an impact on a large portion of Australian workers.
Overall the Sunshine Coast property market is looking really solid. We have some incredible infrastructure projects already completed and underway. In a nutshell billions of dollars have been allocated into account highway and road infrastructure, hospital infrastructure at both Kawana and Nambour, the redevelopment of the Maroochydore CBD, Sunshine Coast Airport and of course Aura - the Caloundra South residential project delivering housing for a further 50,000 people. There's many more but those are some of the main ones, and some major drawcords for not only interstate relocations as well as boosted tourist numbers to the area.
The Sunshine Coast property market is set by all accounts to stay strong, we have slower growth per annum than the big cities but this assures more accurate and sustainable growth. We have less chance of a huge "correction" or "downturn" (depending on how you view it) as we have seen in Sydney, Melbourne, Perth and to a lesser degree in Brisbane (the Brisbane market is looking pretty strong and predicted to increase steadily over the next 5 years)
At least with the Liberal Government in power, whether we agree with all their policies or not, we can expect the economy to remain strong and the property market to perform better than what it would of almost certainly under a Labour government.
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